PLANADVISER Weekend Newsdash
Week ending October 5th, 2018

Happy Friday readers! This weekend’s mailing focuses on the topic of practice management, with a particular focus on the lack of succession planning in the retirement plan advisory business. Simply put, the need for more succession planning is absolutely clear. Only a little more than a quarter of financial advisers have a formal succession plan, according to the Financial Planning Association. And when it comes to valuing and transitioning their business, just 61% of advisers even have a goal for the value, and less than half have calculated cash flow against a recurring revenue multiple to estimate such a goal. On a related note, if you know of a colleague with an innovative approach to succession planning, please consider nominating him or her for the 2019 PLANSPONSOR Plan Adviser of the Year program. 

Editor's choice
2019 Award Nominations Are Open
As in the past years, PLANSPONSOR/PLANADVISER editors are soliciting your help in identifying qualified candidates for each award. If you work with or for, or know of, a great plan sponsor, plan adviser or plan adviser team, please help us recognize the best in the business.   Read more >
A Mere 27% of Advisers Have a Formal Succession Plan
When it comes to valuing and transitioning their business, 61% of advisers have a goal for the value, and 48% used a recurring revenue multiple to calculate that goal. Read more >
Western Region Sees Strongest Adviser Growth
Of the 805,623 non-clerical employees of SEC-registered firms, more than half spend the bulk of their time providing investment advisory services or research. Read more >
Succession Planning Essential for Long-Term Advisory Growth
Data shows many small business owners continue to work later in life, making them ripe targets for retirement advice and deep support with succession planning and wealth transitions.  Read more >
Adviser Executives Expect Strong Headcount Growth This Year
Polling its members, the Investment Adviser Association finds broad optimism about business prospects in the year; many firms report plans to grow headcounts by up to 10%. Read more >
Practice Differentiation and a Shifting Employment Landscape
Following up on a broad discussion of market volatility, John Diehl, SVP of strategic markets for Hartford Funds, encourages advisers to consider new means to separate their service offerings from the competition; he also offers a sneak peek at some forthcoming research produced in partnership with the MIT AgeLab.  Read more >
PANC 2018: The State of Adviser M&A
With industry statistics showing that 25% of advisers have changed firms in the last four years, there are clearly many advisers in pursuit of the right business model. Read more >
MOST POPULAR STORIES
Walgreen Sued for Keeping Underperforming TDFs in 401(k)

Despite a market “teeming with better-performing alternatives,” the plaintiffs say, Walgreen selected the Northern Trust Funds, which already had a history of poor performance.

‘Stretch IRAs,’ Multigenerational Inheritance and the SECURE Act
Low and middle-income Americans struggling to save for retirement are depending on the U.S. Senate to pass the SECURE Act, advocates say. At present, one roadblock seems to the law’s treatment of “stretch IRAs.”
SECURE Act Ensnared in Senate After Flying Through House
Washington insiders say Senator Ted Cruz is probably the biggest roadblock to the SECURE Act being passed in the near-term under unanimous consent; among other issues, he wants the bill to allow people to use tax-advantaged 529 college savings accounts to pay for home school expenses.
IRS Private Letter Ruling Solves Crucial Annuity Transaction Friction Point

A new IRS private letter ruling essentially conforms the tax treatment of properly structured advisory fees from non-qualified annuity contracts to those paid out of qualified accounts, which typically are not treated as taxable distributions.

The DOL’s Fiduciary Race Ahead of 2021
There is precious little time remaining for the proposal and adoption of any new advisory industry conflict of interest rules that the DOL hopes to make effective during this presidential administration.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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